CHP, Commercial, Distributed Generation, Hydro, Regulation, Solar, Wind  -  October 16, 2015

Renewable Energy in the EPA's Clean Power Plan, Part 1: Introduction to Emission Rate Credits

The U.S. EPA released the final Clean Power Plan, or CPP, on Aug. 3, 2015. The CPP gives states a choice of adopting a rate-based or a mass-based carbon dioxide emissions target for existing electric power plants. A rate-based target is established in pounds of CO2 per megawatt-hour and a mass-based target in tons of CO2 per year. The EPA has created a new instrument called an emission rate credit, or ERC, to use for this adjustment. ERCs will be used to track and account for emissions reductions that can be used to adjust a rate in states with rate-based plans.

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